Originally announced in May 2022, and expected to complete in the third quarter of 2022, the deal between GIC, Greystar and Student Roost underwent a Competition and Markets Authority merger inquiry.
The acquisition was cleared last month and a monitoring trustee appointed on December 22.
Global institutional investor GIC and Greystar announced the joint venture to acquire the UK’s third largest PBSA in 2022. Under the deal, Student Roost will continue to trade under its existing brand, comprising over 23,000 beds.
Some 3,000 beds in UK student cities are also in the development pipeline. Greystar has agreed to divest two of Student Roost’s assets in Birmingham, The Heights (909 beds) and The Old Fire Station (483 beds), with JLL managing the sale.
“The successful financial close of Student Roost marks an important milestone in Greystar’s UK growth strategy and adds an outstanding business to our existing portfolio of over 120,000 student beds globally,” Mark Allnutt, senior managing director – Europe at Greystar, said in a statement.
“It also builds our footprint in UK PBSA”
“It also builds our footprint in UK PBSA, which is characterised by an imbalance in the supply of high-quality and professionally managed assets.”
In early 2021, Greystar acquired five Nido portfolio PBSA assets for £291 million in the UK. It also owns London-focused brand Chapter and was part of a partnership with Goldman Sachs and the Wellcome Trust that sold the iQ portfolio to Blackstone for £4.7 billion in 2020, the largest-ever private property deal in the UK.
Jess Gallop, who will lead the new management structure at Student Roost as managing director, noted that the provider is “widely known for the quality of its all-round resident experience, centred around student wellbeing, extensive amenities and professionally run accommodation”.
“I look forward to working closely with Greystar, GIC and the existing team to take that to the next level and capitalise on the significant opportunities that lie ahead for the business,” Gallop stated.
Chief investment officer of Real Estate at GIC, Lee Kok Sun, added that the “partnership with Greystar will provide a strong platform for Student Roost to pursue further growth while continuing to offer exceptional purpose-built student accommodation with good occupancy rates”.